Member Info for Daisan

Flyinghorse, Are you for real? Do you know anything about mining at all? 'Great grades'! The grades in the RNS this morning were terrible. And irrelevant. The story here is about gold now and any movement will be associated with whether they get some interesting grades. As this is narrow vein stuff, for interesting I mean intercepts of greater than 50gt/m. For example 60g/t over 1m (I suspect that is the kind of width we are talking about here). This is early days and they need to be given the opportunity to explore the property effectively. If the find is anything like Dalradian's then this will be a great buy. If it is just a bit of gold then this will not be commercial and it all goes back to sleep again. It will be a while before we find out.

At this stage it would be the wrong call to issue a dividend. There is plenty to go for here and, as Dibs61 has said, paying down debt would be the most obvious thing to do once the capital investment is sufficiently covered.

When I posted some 'Pros and Cons' on Sunday after increasing my investment on Friday, I had the feeling that this would be a long term hold. It was difficult to see the catalysts coming through to stimulate the share price rise (other than PI speculation) but considering the significant undervaluation, it was worth a punt whilst accepting that it may be there for months/years to come. It was a complete fluke that this came just before a price catalyst event! And it is still partially disappointing that a deal has been done to sell Karchiga for a significant discount to NPV rather than funding to develop it being found. If the latter had taken place (or Karchiga sold at a more favourable level), the share price would have responded much more significantly. Still, you have to take your wins where you get them as AIM is something of a lottery.

Hmmm. Whilst he always comes across as a nice guy, I have never been a particular fan of Zak Mir's. I suppose it is because he gives so little time to the shares he covers that the technical detail is quite limited. He always seems to show stocks with an expanding trend channel and most technical analysis I follow doesn't tend to show that very often at all. However, in this case I don't think you necessarily have to delve into technicals to look for target values. There is the real potential for 5p a share cash with the share price 2p. Discount for doubt and the fact that they are delisting from AIM I could easily see a value of 3.75p. I would put it at about 3.5p currently.

Who says they are not similar? They may well have similar geology. If they are similar to the extent of having the same level of gold deposit then it could be a significant find depending on how much of the rock is ore bearing. But flyinghorse is suggesting it is 'hundreds of millions' which nobody else has suggested and exists nowhere in the world in a single deposit.

Fantastic RNS? All it says is the left over bits from the last one. Low grade metal intercepts that would be ignored on the whole but might provide some credits if there is a viable gold find. I say 'might' because they are so low grade if is possible that they wouldn't be able to commercially extract them at all. The fact that this RNS says that CON would 'like to' present the news rather than the last RNS which said 'is pleased to' says it all really. It's just a tidying up news release. The last one was more significant if hardly earth shattering

They won't be exercised. Unfortunately for those that hold them, they will expire worthless.

Is this really worth no more now than a couple of days before the announcement?

Looks like the market is choosing to focus on the negative!

I thought the results were pretty good and show that the company is going in the right direction. Enough cash to survive for now. Shares at an all time low. Looks like the start of a recovery. Been following Rightster on and off since it floated as I know one of the board of directors. Always had the impression in the early days that it was a bit too freewheeling but the current leadership team seem better. Anyway, not betting the house on it but hoping the operating profit can be reflected in the share price at some point.

As expected, figures are down on Q1 2015 owing to a hard winter and encountering 'harder rock' (sounds a bit like the wrong kind of snow argument but there you go). But there are positive developments going forwards which will significantly affect production over the coming quarters, not to mention the rise in gold prices as well. The reduction in debt is also welcome. Hopefully the market will focus on the positives but I wouldn't rule out a knee jerk reaction to the top line numbers and the fact that gold is a bit softer this morning.

Earlyretirement, Half agree! Traditionally the movement of miners has preceded significant rises in gold. Or at least that is the case for US listed miners. If you look at the performance of the HUI, GDX and XAU you will notice that there have been very significant rises this year. Much more so than gold. The HUI is in very bullish mode at the moment whereas gold is somewhat less so having been unable to break above the 2016 high so far. If it gets above $1300 then that should pretty much compete the bullish set up for gold. I agree about the dollar. The region 92.5-94 is significant as there are multiple levels of support in this region. If it breaks then the USD should see a great deal of net outflows and this would be positive for precious metals. I don't agree as regards SHG. They do not need the price of gold to surge to make money. Cash costs are now low and AISC costs are low as well. They generated $8m cash in Q4 and I suspect more in Q1. They had $19m cash at the end of that quarter. Look at the Q4 report for more information.

Knicol46, Don't misunderstand me. They do own the gold property. And the licence has been extended to 2020. But it is classed as a discontinued operation since David Invest couldn't come up with the goods and was assigned zero value. As such, if they did sell it, it would be a compete bluebird. But currently it would be right to assign zero value to it.

Forgot to mention that 'should not be long now' really does mean that. Today could be a critical day with the dollar right on key support and gold right on key resistance. If the GDX turns, the dollar bounces and gold fails to get through the $1260-1280 range then all bets are off and gold is likely to retrace 10%+ with the miners (which are stretched) falling significantly. By miners, I generally mean the GDX/HUI indices. UK miners don't seem to behave in the same way.

Hmmm. Not convinced at the moment. I think that deal is dead and the gold asset has been entered as a 'discontinued operation' with zero asset value. That suggests that they think it is dead and David Invest are likely to have withdrawn completely.

I have previously posted on some technical analysts that I tend to follow so thought I would give an update given the recent moves in the gold market. One of those I follow remains bearish on gold for the medium term and is predicting a pull back sub-$1000/oz. One is vacillating at the moment but has gone on record as saying he expects a pullback, if only to the $1150-1180 level. One has been bullish for some time and one has just joined him from being bearish. There remain others that I do read that are bearish (with one predicting $900/oz) but on the whole they are shifting to a more bullish stance. Key factors for bulls are the performance of gold stocks relative to gold itself and the USD/JPY rate. I don't know whether you follow the US gold shares but they have been rocketing recently. Key factors for the bears are the COT report (which is terrible for gold), US dollar reaching key support around 93-94 and the fact that the longer term charts still haven't moved into bull phase. In addition the Elliot wavers still suggest that there should be a final movement down. With this in mind I have taken small positions in AAZ and SHG and will be looking to add more miners and gold mining ETFs over the coming weeks. It should not be long now before the situation really does clarify itself - look for the USD softening as a key and gold going above $1280/oz. If the USD strengthens then I will reconsider my position.

Knicol46, What the share price was in September does not mean anything any more. That price was anticipating some kind of funding to bring Karchiga into production. This has materially changed with the news yesterday and instead the company should be viewed more as a potential cash shell.

OK. I think we are in agreement!

David, I work out net cash based on what their reports are telling us. If you look at previous reports they suggest a very consistent $200k per month burn so the $4.7m is probably about $4.1m by the end of March. Add the $9.75m for the sale (to be concluded) gets to just under the $14m mark or just under £10m.

Oh. I agree. This is not worth 5p now. A discount has to be applied